Sharechat Logo

NZ dollar edges up in thin trading as US stalemate continues

Monday 14th October 2013

Text too small?

The New Zealand dollar edged up as holidays in major markets kept trading light and amid the ongoing stand-off between US legislators which is threatening a default on debt obligations of the world's biggest economy.

The kiwi rose to 83.29 US cents at 5pm in Wellington from 82.83 cents at 8am, little changed from 83.16 cents at the close of trading in New York on Friday. The trade-weighted index increased 77.33 from 77.13 on Friday in Wellington.

Trading was light with Hong Kong, Japan and the US closed for public holidays, in an environment where all eyes are on the stand-off in American politics as the Republican-controlled House of Representatives is refusing to sign-off on President Barack Obama's Federal budget. The stoush will come to a head on Thursday in Washington when the US reaches its borrowing limit, which if it fails to secure an increase, means it will potentially default on its obligations.

"It's trading in a fairly tight range for the kiwi - there's a mild upside bias given how close to the crunch-time for the debt ceiling," said Michael Johnston, a senior trader at HiFX in Auckland. "The markets think sanity will prevail."

A BusinessDesk survey of nine traders and strategists predicts the local currency may trade between 81.80 US cents and 84.50 cents this week. Six expect the currency to remain unchanged, two predict it will decline, and one says it may gain.

Traders will be looking at Reserve Bank deputy governor Grant Spencer's speech tomorrow on the housing market for any clues as to the immediate impact of the central bank's lending restrictions on low-deposit mortgages. Local house prices rose 7.8 percent last month from September 2012, according to Real Estate Institute of New Zealand figures published today.

The New Zealand dollar rose to 87.95 Australian cents at 5pm in Wellington from 87.62 cents last week ahead of tomorrow's release of the Reserve Bank of Australia's minutes of its last meeting.

The kiwi slipped to 51.12 British pence from 51.95 pence on Friday and traded at 61.41 euro cents from 61.31 cents. The local currency edged up to 81.87 yen from 81.74 yen on Friday.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Regional house price inflation accelerates in October
Sanford FY earnings flat on reduced volumes
NZ dollar extends gains, aided by US-China trade doubts
12th November 2019 Morning Report
MARKET CLOSE: NZ shares gain, retirement villages buoyed by Auckland housing market bounce
NZ dollar rises, shrugging off US-China trade war woes
Long-serving ACC investment chief calls it a day
Institutional investors continue to shun Fonterra
Card spending stalls; dearer petrol crowds out other goods
Abano directors cave to takeover by scheme of arrangement

IRG See IRG research reports